SYNA is partnering with GOOGL to enhance artificial intelligence
The shares of Synaptics Inc (NASDAQ:SYNA) are up 5.9% at $80.85 at last glance, after news that the semiconductor name is partnering with Google parent Alphabet (GOOGL) to enhance artificial intelligence (AI) for the internet-of-things (IoT) network. GOOGL was last seen up 0.4%, brushing off a downgrade from JMP Securities to "market perform."
Looking at SYNA's chart, pressure at the $82 level, which has been in place since August, appears to be capping gains today. Furthermore, the stock is now running into the overhead 200-day moving average, which rejected it several times since April. The equity shed 24.5% in the last 12 months.
Short covering could account for some of today's rally. Short interest is up 35.1% in the past month, and accounts for 11.4% of Synaptics stock's available float. It would take roughly 10 days for shorts to cover their bets, at the equity's average pace of trading.
When weighing in on SYNA, options seem like a good way to go. The security's Schaeffer's Volatility Index (SVI) of 43% sits in the 15th percentile of its annual range, meaning options traders are pricing in low volatility expectations.
SYNA's options volume is normally nonexistent, with the 128 calls exchanged so far today representing eight times the volume typically seen at this point. The February 90 call is the most active, with new positions being sold to open there.